Investment returns disappoint BP chief Looney, green-energy strategy under review: Report

BP had earlier committed to bring down its net carbon emissions to zero by 2050 (Representative image)

Disappointed with the lower-than-anticipated returns on investments in renewable energy, BP Plc Chief Executive Officer Bernard Looney wants to narrow down the company's green-energy strategy, a report said on February 1, citing sources linked to the British energy major who are privy to the development.

Looney intends pursue a "narrower green-energy strategy", a Wall Street Journal report said, citing the sources. Among measures planned by him includes a roll back in some of the steps taken by the company towards its massive renewable energy push, the newspaper added.

The persons, who are familiar with the discussions, claimed that Looney conveyed to some of the people about the need to convince shareholders on BP's strategy to maximise its profit in oil and gas operations. Being a legacy player, the company holds an advantage in this segment.

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Looney also told some of the people that he intends to emphasise less on environmental, social and governance (ESG) goals in the days to come, in a bid to clarify to the stakeholders that the ESG agenda is not deviating BP away from the path of profit, the sources reportedly said.

Moneycontrol could not independently verify the developments. At the time of writing this report, Looney or BP's spokesperson did not issue an official statement.

Looney, according to the WSJ report, is planning a shift in strategy as part of a short-term course correction. Over the past couple of years, BP has projected itself as an energy firm which is committed to long-term environmental goals. It had, in 2021, announced that it would bring its net carbon emissions to zero by 2050.